Heineken suspends production in Egypt

After several days of protest against President Mubarak’s regime, several large oil companies and other multinationals, Heineken among them, have shut down operations.

Chemicals company Akzo Nobel, Dutch brewer Heineken, consumer-products giant Unilever, Japanese automaker Nissan Motor Co., French building materials company Lafarge and General Motors all halted production, repatriated ex-pats and told local staff to stay at home as tension rises in the country.

A spokesman for Heineken told media on 31 January 2011 that it was not immediately clear when production could be resumed or what the financial impact would be from the production halt.

Heineken had earlier repatriated more than two dozen Dutch nationals from Egypt.

Heineken, the world’s number three brewer is estimated to have sales of more than USD 220 million (EUR 160 million) in the country through activities ranging from beer and wine to spirits and soft drinks production. The brewer employs 2,040 people in Egypt, it was reported.

It is assumed that regional volumes and profitability will suffer from the situation, but the contribution of Heineken’s unit Al Ahram Beverages Company to the group is limited, which implies that the suspension of production could have a limited impact on Heineken’s earnings.